South African retailer Shoprite will exit the Kenyan market within January citing strategic irrelevance of the business.
The retailer posted record losses in excess of KSh3.2 billion according to its Financial Results for the year ended June 28.
“Kenya, with three stores at year-end, has continued to underperform relative to our return requirements,” part of the report reads.
The Kenyan unit has notified Kenya Union of Commercial Food and Allied Workers that it will shut its head office this month.
“In line with the company’s decision to exit the Kenyan market, it intends to permanently close its home office. It is contemplated that the proposed closure will cause employees of the said office to be declared redundant and therefore the termination of their employment contracts on the account of the redundancy. This decision will impact you,” reads part of the letter seen by Khusoko.
“This letter, therefore, serves to provide you with not less than a month notice prior to the date of the intended termination on account of redundancy in terms of Section 40 of the Employment Act of 2012.”
The retailer will also exit Mozambique and Tanzania. markets.
Shoprite opened its doors in the Kenyan market for trading replacing Nakumatt at the Westgate Mall in 2018.